Hexagon Agrees Banking Facilities & Director Change

Hexagon Agrees Banking Facilities & Director Change

Further to the publication of its Annual Report and Accounts for year ended 31 March 2009, Hexagon Human Capital is pleased to confirm that revised terms for our banking facilities have been agreed (subject to contract) with Barclays Bank Plc. The impact of the new terms is to convert our overdraft to a term loan and to extend the repayment date on our loans from December 2011 to September 2012. An additional 0.5m working capital is also being provided through an invoice discounting facility that will provide a better structure to support the business moving forward. We are delighted with the support we have received from the bank and feel the Group is well placed to trade successfully through the current economic challenges.

Contingent Consideration
The Board also confirms that following updated estimates made between the preliminary announcement and the publication of the Annual Report and Accounts the liability for contingent consideration as at 31 March 2009 was reduced to 3.1m, from 4.2m. It is also important to note that since the year end contingent consideration has been settled or renegotiated and currently stands at approximately 1.8m with the majority due to be settled in November 2011 as opposed to March 2011. Additionally, the Board has reviewed its goodwill impairment charge and as a result for the year to 31 March 2009 the goodwill impairment charge was 8.1m.

Directorate change
The Company announces today that Carl Thompson, Chief Financial Officer, and the Board have mutually agreed that Carl will leave the Company with immediate effect.

In the interim, prior to the Company appointing a suitable Chief Financial Officer, the Company has appointed Edmund Watkinson as Interim Group Head of Finance.

Ed, a CIMA qualified accountant, has significant experience having held a number of senior financial roles within public companies. He will not sit on Hexagon's main board but will ensure the smooth running of the Company's finances in this transitional period.

Commenting on the Board changes, Rob Walker Executive Chairman said:
'Since joining the Company, Carl has been influential in bringing together the core businesses within the Hexagon Group. This additional Board change reflects the decision to refocus strategy on organic growth from the existing businesses and away from the buy and build model adopted at IPO in more benign market conditions. I wish to thank Carl for his contribution to the business and wish him well for the future.'